Which of These Is Defined as the Practice of Simultaneously

question 26

Multiple Choice

Which of these is defined as the practice of simultaneously purchasing and selling an asset in different forms or markets to take advantage of an imbalance in price?

• A) Arbitrage
• B) Spot transaction
• C) Indirect quote
• D) Cross quote

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Definitions:

Prepaid Expense

An expense that has been paid in advance and is recorded as an asset until it is actually incurred.